Urban Outfitters (NASDAQ:URBN) shares fell about 7% on Monday morning, even after the retailer reported record holiday sales for the two months ended December 31, 2025.
The lifestyle retail group, which operates brands including Anthropologie, Free People and Urban Outfitters, said total company net sales rose 9% compared with the same period in 2024. Net sales in the Retail segment increased 7%, while comparable Retail segment sales were up 5%.
Retail performance was supported by mid-single-digit growth across both digital and physical stores. By brand, comparable Retail segment sales climbed 9% at Urban Outfitters, 5% at Free People and 3% at Anthropologie. FP Movement delivered particularly strong momentum, with comparable sales rising 18%.
Urban Outfitters’ Subscription segment, which includes its Nuuly clothing rental business, posted standout growth, with net sales up 43%, largely driven by a 41% increase in average active subscribers year on year. The Wholesale segment also recorded solid gains, with net sales up 13%, supported by higher Free People wholesale volumes sold through department stores.
Looking at a longer period, total company net sales for the eleven months ended December 31, 2025 increased 11% compared with the same period in 2024. Over that time, Urban Outfitters opened 58 new retail stores and closed 7 locations.
Despite the strong sales update, investor sentiment appeared cautious, pushing the stock lower in Monday’s session. Shares in other apparel retailers were also under pressure, with Abercrombie & Fitch (NYSE:ANF) and American Eagle Outfitters (NYSE:AEO) trading lower following their own holiday sales updates.
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